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BlackBerry Fourth Quarter reports another loss

BlackBerry’s revenue also rises in its fiscal fourth quarter

BlackBerry reported fourth-quarter FY24 results today, reporting revenue of $173 million, beating the consensus of $154.8 million. Analysts were expecting an adjusted loss of $0.04 per share on $154.2M in sales.

BlackBerry lost $56 million, or 10 cents a share, in the quarter, compared with a loss of $495 million, or 85 cents a share, in the year-ago period.

IoT revenue reached an all-time quarterly record of $66 million, up 25% Y/Y, and Cybersecurity revenue rose 5% Y/Y to $92 million.

Adjusted gross margin expanded to 75% from 67% a year ago, with IoT gross margin remained flat Y/Y at 85%. Cybersecurity ARR increased 3% Q/Q to $280 million.

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“BlackBerry delivered a solid finish to the fiscal year, setting a number of new records in the process. Despite industry delays to automotive software development programs, our IoT division delivered its strongest ever quarter for revenue, as well as its best year for adding new QNX royalty backlog from design wins that resulted in 27% year-over-year growth to approximately $815 million,” said John J. Giamatteo, CEO, BlackBerry.

“We also took small, but important steps forward for the Cybersecurity division, with ARR stabilizing and even increasing by 3% sequentially.  At a Corporate level, we are making good progress with efforts to both separate the divisions and drive towards profitability, and operating cash usage more than halved sequentially this quarter.”

Fourth Quarter Fiscal 2024 Financial Highlights

  • Total company revenue was $173 million.
  • Total company non-GAAP and GAAP gross margin increased to 75%.
  • IoT revenue was an all-time quarterly record $66 million, a 25% year-over-year increase; IoT gross margin remained at 85%.
  • Cybersecurity revenue was $92 million, a 5% year-over-year increase; Cybersecurity gross margin was 65%.
  • Cybersecurity ARR increased sequentially by 3% to $280 million.
  • Licensing and Other revenue was $15 million.
  • Non-GAAP operating profit was $16 million and GAAP operating loss was $56 million.
  • Non-GAAP basic earnings per share was $0.03 and GAAP basic loss per share was $0.10.
  • Adjusted EBITDA was $21 million.
  • Total cash, cash equivalents, short-term and long-term investments was $298 million and cash used by operations decreased by 52% sequentially to $15 million.

Full Year Fiscal 2024 Financial Highlights

  • Total company revenue was $853 million, including $218 million relating to the sale of legacy patent portfolio in Q1.
  • Total company non-GAAP and GAAP gross margin was 61%.
  • Non-GAAP operating profit was $36 million and GAAP operating loss was $125 million.
  • Non-GAAP basic earnings per share was $0.05 and GAAP basic loss per share was $0.22.

Business Highlights & Strategic Announcements

  • BlackBerry QNX announces general availability of QNX Software Development Platform (SDP) 8.0, its scalable, high-performance foundation for next generation automotive and IoT systems
  • Stellantis, BlackBerry QNX and AWS launch virtual cockpit, transforming in-vehicle software engineering
  • BlackBerry launches QNX Sound, an audio and acoustics innovation platform for software-defined vehicles
  • Mobility in Harmony (MIH) consortium, a Foxconn initiative, selects BlackBerry IVY to power its next-generation electric production vehicles
  • BlackBerry is first Mobile Device Management vendor to receive BSI clearance for BlackBerry UEM Brightsite usage with Apple iNDIGO
  • BlackBerry’s new Cybersecurity Center of Excellence (CCoE) in Kuala Lumpur will offer SANS training courses to help grow and upskill cyber workforces in Malaysia
  • BlackBerry completes $200 million, 5-year 3.00% convertible notes private offering, and fully repays $150 million of short-term extendable debentures
  • BlackBerry appoints Philip Brace to its Board of Directors

BlackBerry is providing the following guidance for the first quarter (ending May 31, 2024) and the full fiscal year 2025 (ending February 28, 2025).

Q1 FY25    Full fiscal year FY25
Total BlackBerry revenue:  $130 – $138 million  $586 – $616 million
IoT revenue:  $48 – $52 million      $220 – $235 million
Cyber revenue:  $78 – $82 million      $350 – $365 million
Licensing & Other revenue:Approximately $4 millionApproximately $16 million
Adjusted EBITDA:  ($15) – ($25) million    Breakeven – +$10 million 
Non-GAAP basic EPS:  ($0.04) – ($0.06)        ($0.03) – ($0.07)